DEFENSE LOGISTICS AGENCY HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

February 1, 2021

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING (SDR) PROCESS 

REVIEW COMMITTEE (PRC)

SUBJECT: Approved Standards Change (ADC) 1347A, Addendum to ADC 1347 Mandatory 

Closure Notices for Supply Discrepancy Reports (SDR)

The attached change to DoD Enterprise Business Standards, as outlined in the 

attachment, is approved for implementation.

Addressees may direct questions to Mr. Ben Breen, Discrepancy/Deficiency 

Administrator, e-mail: EBSO.SDR@dla.mil. Others may contact their designated PRC 

representative available at http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/. 

THOMAS A. DELANEY

Director, Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD(Logistics)
Attachment, ADC 1347A

Page 1

ADC 1347A

Addendum to ADC 1347, Mandatory Closure Notices for Supply 

Discrepancy Reports (SDR)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Enterprise Business 

Standards Office (EBSO), Mr. Ben Breen, Deficiency/Discrepancy Administrator, e-mail: 

EBSO.SDR@dla.mil.

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: Supply 

Discrepancy Reporting

3. REFERENCES:

a. Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1347, 

Mandatory Closure Notices for Supply Discrepancy Reports, June 29. 2020

b. DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, Supply 

Standards and Procedures, Chapter 17, Supply Discrepancy Reporting 

4. APPROVED CHANGE(S):

a. Brief Overview of Change:

(1) This addendum will allow the action activity to process an SDR 

reply/disposition (Transaction Set (TS) Purpose Code 11) changing the cause code after the 

Closure Notice (CN) has processed.

b. Background: 

(1) ADC 1347 enhances communication between the submitting SDR system and 

the action activity. It documents and expands upon procedures regarding CNs generated for all 

SDRs regardless of submitting system or activity. The only exceptions to the above is for SDRs 

with Action Codes 1H (No action required; information only) and 3B (Discrepancy reported for 

corrective action and trend analysis; no reply required). (Reference 3.a.)

(2) Once a CN is generated on an SDR no further transaction may process against 

this SDR. However, if the action activity closes the SDR with a cause code and the vendor 

challenges the cause code originally entered by the action activity, it is plausible that the 

outcome of the challenge could result in the action activity to change the cause code. In this 

case, the replacement/revised cause code update will need to post to the closed SDR for only

SDR Document Type Codes 6/9/P/W SDRs. Once the cause code has been updated in the record 

it must be able to update the Supplier Performance Risk System (SPRS). (Reference 3.b,)
Attachment, ADC 1347A

Page 2

c. Approved Change in Detail:

(1) Allow SDR reply/disposition with an updated cause code to transmit after the 

CN has been processed and update the SPRS system to revise the original cause code processed 

in SPRS.

(2) This change is only applicable to the below conditions:

(a) Action activity routing identifier code (RIC) is the activity providing 

the reply,

(b) Transaction Purpose Set Code 11 Reply/Response after the CN, and

(c) SDR Document Type Codes 6/9/P/W.

(3) WebSDR will reject any other subsequent transaction submitted after a CN 

has processed with Reply Code 952.

(4) WebSDR will reject any CN with a reply code other than 410,411 or 412 with 

Reply Code 927. The narrative rejection comments will state ”Reply Code 410, 411 or 412 are 

the only authorized reply codes used with CN transactions.”

(5) Submitting SDR systems must be able to accept an SDR reply after the CN 

has closed the SDR without causing rejections. 

d. Revisions to Defense Logistics Manuals: Revise DLM, Volume 2, Chapter 17, 

Supply Discrepancy Reporting, as shown in the enclosure.

e. Approved Transaction Flow: Standard SDR business transactions apply.

5. REASON FOR CHANGE: Allow for changes to the cause code after the SPRS vendor 

challenge process as needed after an SDR has been closed with the closure notice.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: SPRS will accurately reflect the vendor cause code after the vendor 

challenge process has been completed.

b. Disadvantages: None.

7. ADDITIONAL COMMENTS TO CONSIDER: Applicable to only SDR Document Type 

Codes 6/9/P/W SDRs.

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Components to implement 

upon approval.

9. IMPACT: 

a. New/Changes Data Elements: None identified.
Attachment, ADC 1347A

Page 3

b. Automated Information Systems (AIS): Product Deficiency Reporting and 

Evaluation Program (PDREP), GSA Vision, DLA Distribution Standard System (DSS), Army 

Logistics Modernization Program (LMP), Air Force Security Assistance and Cooperation 

(AFSAC), Air Force Wholesale DO35K, Air Force Integrated Logistics System Supply (ILS-S) 

and DLA Enterprise Business System (EBS) SDR systems must be updated to process SDR 

replies to change the cause code after the CN has posted. Also, submitting systems must be 

updated to accept an incoming SDR reply after the CN has posted and closed the SDR. 

c. Defense Automatic Addressing System (DAAS): Update WebSDR to reflect 

changes identified in this change upon approval.

d. Non-DLM Publications: None identified. 

11. PSC 1347A Comment Response Table:

Component Component Responses Received DLMSO Response

Air Force Concur with comment.

Comments:

1. This will reopen the SDR and the last system of 

record will need to close it out after the change 

notice. What will be the closeout timeframe for the 

applicable system? What is the impact, if any, of not 

closing this out in a timely manner?

2. What is the timeline for the systems to support this 

change for cause code after the CN is posted?

Noted.

Response:

1. This requirement is for the 

submitting system to be able 

to accept an incoming reply 

11 when the Cause Code is 

updated. EBSO expectation 

is that the Cause Code is 

updated in the submitting 

system, there is no timeframe 

for this and there is not to be 

any expected follow on action 

from the submitting system. 

the goal is for the submitting 

system to just record the 

updated Cause Code that is 

all. 

2. There is not a definitive

timeline, however EBSO 

would like to have some 

expected date for 

implementation, even if it is a 

year or so out.

Army Concur without Comment Noted.

DLA Concur without comment. Noted.

USMC Concur without comment. Noted.

Navy Concur without comment. Noted.

DAAS Concur without comment. Noted.

USTRANSCOM Abstains. Noted.

ODASD(L) Concur without Comment Noted
Enclosure, ADC 1347A

Page 1

Enclosure 

Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and Procedures

Make the following changes to Volume 2. Additions are shown in red bold italics and deletions shown 

in double strikethrough.

Chapter 17, Supply Discrepancy Reporting 

Intervening text not shown

C17.3.12.1.2.5. Completion Notification.

1 The submitting system will 

use a completion notification, identified by Transaction Set Purpose Code CN in the SDR 

reply, will be used by the submitter storage activity to communicate with the action activity 

that final action has been taken on an SDR requiring a materiel disposition action. The 

receiving SDR system receiving the CN may close the SDR as well or keep it open for 

additional actions. Submission of a completion notice is required for all SDRs prepared by 

the submitter, with the exception of those clearly identified as being provided for information 

only and requiring no action activity reply (SDR Action Codes 1H or 3B only). The completion 

notice may not be used to modify originally reported SDR data elements. The following subparagraphs provide more detailed information regarding CN processing. 

C17.3.12.1.2.5.1. When a CN processes against an SDR, the SDR 

cannot be reopened. The CN puts the SDR into a closed status, and signifies the submitter 

has taken disposition action provided by the action activity. For SDR Document Type Code 

6/9/P/W, WebSDR will process a Reply (Transaction Set Purpose Code 11) only when 

the action activity determines the cause code needs to be updated after the vendor 

challenge process has been completed. WebSDR will reject any other subsequent 

transaction submitted after a CN has processed with Reply Code 952.

C17.3.12.1.2.5.2. CNs can only be generated by the submitting 

system. WebSDR will reject with Reply Code 950 any attempt to generate a CN for an SDR 

that did not originate in the submitting system.

C17.3.12.1.2.5.3. The submitter will use a completion notification to 

inform the action activity that all action is complete using Reply Code 410.

C17.3.12.1.2.5.4. Under selected scenarios, the submitter will 

provide a completion notice without a response from the owner/manager when the SDR is 

automatically closed immediately after transmission. SDR Action Codes 1B (Materiel being 

retained) and 1G (Reshipment not required; item to be re-requisitioned) apply. A completion 

notice will be provided using Reply Code 410.

C17.3.12.1.2.5.5. The submitting system will prepare a completion 

notification using Reply Code 411 to notify the action activity that the SDR has been closed 

due to zero balance on record. This will not result in an investigation as it is generally the 

result of processing a release order during the interim period after the SDR was prepared and 

prior to execution of the disposition instructions. The action activity may close the SDR due 

1 Refer to ADC 1044A Clarification of Business Rules associated with SDR Replies for Status Update and 

Completion Notification
Enclosure, ADC 1347A

Page 2

to the materiel no longer being available. If SDR is a Document Type 9, then the action 

activity must take further action to locate new procurement materiel. 

Intervening text not shown

C17.3.19. Defense Automatic Addressing System (DAAS) SDR Processing

C17.3.19.1. Under DLMS, SDRs are integrated with standard logistics transaction 

processing through DAAS. DLMS transaction formats are available in ASC X12 EDI or EDIbased XML. Guidance for transaction content is provided in DLMS ICs available on the 

DLMS IC page. DoD WebSDR will perform the following actions:

Intervening text not shown

C17.3.19.1.2.9. Edit new submission SDRs (transactions and direct 

input) to enforce the serial number convention that the serial number maximum field length 

may not exceed 30 characters and may only include alpha numeric (A-Z, 0-9), dashes and 

forward slashes. Spaces are not allowed. Reject SDRs with serial numbers not meeting this 

convention using new Reply Code 947 (Transaction Rejected. Invalid serial number length or 

convention.

C17.3.19.1.2.10. WebSDR will reject with Reply Code 952 any 

subsequent transaction submitted after a CN has processed except when the action 

activity must update the vendor non-compliance cause code once the DOD vendor 

challenge process is completed for SDR Document Type Codes 6/9/P/W SDRs. 

C17.3.19.1.2.11. WebSDR will reject with Reply Code 950 any attempt 

to generate a CN for an SDR that did not originate in the submitting system.

C17.3.19.1.2.12. WebSDR will reject with reply code 927 any CN 

with a reply code other than 410, 411 or 412. The narrative rejection comments will 

state ”Reply Code 410, 411 or 412 are the only authorized reply codes used with 

CN transactions.”